Australian inflation rate in 1974: 15.83%

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Inflation in 1974 and Its Effect on Dollar Value

Purchasing power decreased by 15.83% in 1974 compared to the previous year, 1973. On average, you would have to spend 15.83% more money in 1974 than in 1973 for the same item.

In other words, AU$1 in 1973 is equivalent in purchasing power to AU$1.16 in 1974.

The 1973 inflation rate was 9.09%. The inflation rate in 1974 was 15.83%. The 1974 inflation rate is higher compared to the average inflation rate of 4.85% per year between 1974 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1974 was 13.9. It was 12 in the previous year, 1973. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.


Inflation from 1973 to 1974
Average inflation rate 15.83%
Converted amount (AU$1 base) AU$1.16
Price difference (AU$1 base) AU$0.16
CPI in 1973 12.000
CPI in 1974 13.900
Inflation in 1973 9.09%
Inflation in 1974 15.83%


AUD inflation chart from 1922 to 2017


How to Calculate Inflation Rate for AU$1, 1973 to 1974

This inflation calculator uses the following inflation rate formula:

CPI in 1974CPI in 1973
×
1973 AUD value
=
1974 AUD value

Then plug in historical CPI values. The Australian CPI was 12 in the year 1973 and 13.9 in 1974:

13.912
×
AU$1
=
AU$1.16

AU$1 in 1973 has the same "purchasing power" or "buying power" as AU$1.16 in 1974.

To get the total inflation rate for the 1 years between 1973 and 1974, we use the following formula:

CPI in 1974 - CPI in 1973CPI in 1973
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

13.9 - 1212
×
100
=
16%

News headlines from 1973

Politics and news often influence economic performance. Here's what was happening at the time:

  • President Richard Nixon announces the end of the Vietnam War.
  • The longest war in American history finishes after William Rogers and Nguyen Duy Trinh of US and North Vietnam's army sign a cease-fire.
  • The IRA attacks London for the first time following the arrests of 10 of its members.
  • The Senate Watergate Committee begins its hearings.

Data Source & Citation

Raw data for these calculations comes from the government of Australia's annual (CPI) as provided by the Reserve Bank of Australia. The consumer price index was established in 1922 and is tracked by Australian Bureau of Statistics (ABS).

You may use the following MLA citation for this page: “Inflation Rate in 1974 | Australia Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 11 Dec. 2018, https://www.officialdata.org/Australia-inflation-rate-in-1974.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


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